Easterly Government Properties Reports Third Quarter 2016 Results

Easterly Government Properties, Inc. (NYSE:DEA) (the "Company" or "Easterly"), a fully integrated real estate investment trust ("REIT") focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, today announced its results of operations for the quarter ended September 30, 2016.

Financial Highlights for the Quarter Ended September 30, 2016
  • Net income was $1.1 million, or $0.03 per share on a fully diluted basis for the three months ended September 30, 2016.
  • FFO was $13.4 million, or $0.30 per share on a fully diluted basis for the three months ended September 30, 2016.
  • FFO, as Adjusted was $13.1 million, or $0.29 per share on a fully diluted basis for the three months ended September 30, 2016.
  • CAD was $11.2 million for the three months ended September 30, 2016.
  • On September 29, 2016, the Company closed on a seven year $100.0 million unsecured delayed draw term loan, which matures on September 29, 2023. The term loan has a 180-day delayed draw period and is prepayable without penalty beginning in October 2018. Subsequent to the quarter end, the Company has entered into two forward-starting interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate on future draw-downs of the term loan at 3.12% annually based on the Company's current leverage ratio.

Portfolio Highlights
  • Portfolio occupancy at 100%.
  • Completed the acquisition of three of four properties as part of the Company's previously announced agreement to acquire a 302,057 square foot U.S. Government-leased portfolio. The Company expects to close on the fourth portfolio property in the fourth quarter of 2016.
  • Completed the acquisition of a property located in Alameda, California, which is currently under development to become a 65,810 square foot Food and Drug Administration (FDA) laboratory.
  • In total, the Company has completed the acquisition of 12 operating properties and one property under development since its IPO on February 5, 2015.

"We are pleased with our results for the quarter," said William C. Trimble III, President and Chief Executive Officer of Easterly. "Our business model continues to deliver strong predictable results with cash flows that are backed by the full faith and credit of the United States Government, which translated to a year-over-year FFO per share growth of 17.5% in the quarter. The company is well positioned to continue to execute its strategy of acquiring the highest quality portfolio of mission critical properties that support our earnings growth objective."

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